ISLAMABAD - Arabstoday
Pak-Iran gas pipeline project Senator Dr. Asim Hussain, who was appointed Advisor to the Prime Minister on Petroleum and Natural Resources on Tuesday told a news conference that resources are
being arranged for the multi-billion dollar pipeline.
The US $7.5 billion project has been described as the 'peace pipeline', which will connect Iran's giant South Fars gas field with Pakistan's Balochistan and Sindh provinces, and was originally schedulled to go from there to India, and possibly also to China.
Pakistan has to construct about 700-km pipeline from the border, traversing along the Makran Coastal Highway to connect with its existing gas transmission network at Nawabshah. A 42-inch diameter pipeline is planned to be built, which is estimated to cost US$1.65 billion.
The project is crucial for Pakistan to avert a growing energy crisis, already causing severe electricity shortages in the country and the project would help generate around 5,000 megawatts of electricity.
Under the gas sale and purchase agreement (GSPA), Pakistan will import about 750 million cubic feet a day (mcfd) with a provision to increase it to one billion cubic feet a day (bcfd).
The volume of imported gas will be about 20 per cent of Pakistan's current gas production and the agreement is for a period of 25 years, renewable for another five years.
Iranian officials have reported said that the pipeline was 1,000 km long, with about 907 km of it, has already been built.